Fibra Macquarie Mexico · BIVA:FIBRAMQ/12
Fibra Macquarie Mexico — Investor Presentation (March 2022)
31 slides from Fibra Macquarie Mexico's investor presentation, March 2022
Slide 1: FIBRA Macquarie México Investor Presentation
FIBRA Macquarie México Investor Presentation March 2022 1
Slide 2: Important information
Important information This document has been prepared by Macquarie Asset Management No risk control mitigant is failsafe. Notwithstanding the mitigants The growth opportunities described herein are not necessarily México, S.A. de C.V. (“MAM Mexico”), as manager, acting in the name described herein,
Slide 3: Overview
Overview FIBRA Macquarie México is a premier owner of institutional quality industrial and retail real estate with a best-in-class internal property management platform and attractive growth pipeline. 236 34.5M sqft1 79%2 Industrial properties Gross leasable area of rents are US$-linked 171 US$2.5bn
Slide 4: Favorable market dynamics
01 Favorable market dynamics Compelling Mexico market tailwinds 4
Slide 5: An unwavering focus on creating value
An unwavering focus on creating value Favorable market dynamics Growth pipeline Prudent capital management Compelling Mexico market Attractive development strategy Track record of disciplined capital tailwinds allocation & well-positioned balance sheet Reliable financial Quality portfolio Sustainabi
Slide 6: Dynamic market fundamentals supporting growth
Dynamic market fundamentals supporting growth Growth of ecommerce logistics, nearshoring & Mexico’s favorable position in the global supply chain provide strong tailwinds to the industrial real estate sector. Increased competitiveness Location Labor Resilience Supply Ecommerce Competitiveness Proxim
Slide 7: Mexico plays an important and growing role in the global supply chain
Mexico plays an important and growing role in the global supply chain FIBRAMQ has recently closed nearshoring-related transactions across diverse manufacturing tenants including clean drinking water systems, semi-finished metals and auto parts. Average compensation for manufacturing workers (US$/hr)
Slide 8: Fundamentals supporting Mexico's real estate sector
Fundamentals supporting Mexico’s real estate sector Ecommerce sales growth (2010 – 2025, US$bn)1 Auto parts sector recovery to continue in 2022 (US$bn)2 Domestic Market Exports % Change YoY 30% 20% 17% 6% 7% CAGR 42% 6% 1% 2% 2% 1% 5% -20% Ecommerce sales growth (2019 – 81 2020): MXN: 61% | USD: 44%
Slide 9: FY21 Highlights
FIBRA Macquarie México MACQUARIE, 02 FY21 Highlights
Slide 10: FY21 highlights
FY21 highlights Financial Operational / balance sheet Strategic initiatives AFFO Occupancy Developments FY21 Ps. 2.3827/CBFI1 96.0% industrial ~900k sqft of GLA under construction FY22 guidance Ps. 2.50-2.55/CBFI1 90.1% retail in industrial portfolio 95.2% consolidated Distribution FY21 Margins2 ESG
Slide 11: Quality portfolio
03 Quality portfolio Prime markets managed by internal property administration platform 11
Slide 12: High quality industrial-focused portfolio in prime markets
High quality industrial-focused portfolio in prime markets Tijuana Mexicali Key market presence 25/6.5% 13/3.2% Nogales 2/2.9% Cd. Juárez ● Industrial assets in Hermosillo 35/13.4% strategic manufacturing and 11 / 5.5% Chihuahua 12/3.7% logistics markets. Nuevo Laredo Reynosa 9/3.3% ● Industrial ass
Slide 13: Select industrial properties
CD. JUAREZ Select industrial REYNOSA properties MONTERREY
Slide 14: Ideally positioned to support Mexico's manufacturing and logistics industries
Ideally positioned to support Mexico’s manufacturing and logistics industries Industrial highlights ● Strongest presence in 80% 25% 3.4 Northern states of Mexico, a ABR1 from the Northern ABR contribution of Weighted average lease high industrial demand region, and Border states Top 10 customers ter
Slide 15: FIBRAMQ's vertically-integrated property administration platform
FIBRAMQ’s vertically-integrated property administration platform positioned to drive organic growth Scalable Customer focused Market expertise Growth ● Scalable platform with ● Direct relationship with ● Local professionals ● Capability to provide capacity to integrate 280+ customers expansion and ●
Slide 16: Select retail properties
TECAMAC POWER CENTER, MCMA Select retail CITY SHOPS DEL VALLE, MCMA CITY SHOPS VALLE DORADO, MCMA properties COACALCO POWER CENTER, MCMA
Slide 17: Defensive, high quality retail portfolio
Defensive, high quality retail portfolio Retail highlights ● Defensive portfolio primarily 84% 45% 3.2 in Mexico City Metropolitan located in top three retail ABR2 contribution of Weighted average lease Area (MCMA), Mexico’s top markets of Mexico1 Top 10 customers term remaining in years retail mark
Slide 18: Prudent capital management
04 Prudent capital management Track record of disciplined growth and well-positioned balance sheet 18
Slide 19: Focus on disciplined growth
Focus on disciplined growth Funding growth while controlling leverage through earnings retention (FY17-FY21)1: ● Stable cash generation from operating assets with further growth coming from new developments. 1 – ~Ps. 2.8bn in retained AFFO from FY17 through FY21. 2● Distribution is ~1.2x covered and
Slide 20: Well-positioned balance sheet
Well-positioned balance sheet 5.5% 97% US$231m of debt denominated in Average cost of debt Undrawn revolver US$ 99% 32.3%1 4.1 years Average debt tenor Fixed rate debt Regulatory LTV remaining 5.0x 3.7x 70.6% Net debt/EBITDA ratio2 Interest coverage ratio3 Assets unencumbered4 Balance sheet is compr
Slide 21: Growth pipeline
05 Growth pipeline Attractive development strategy 21
Slide 22: Development platform
Development platform Prudently expanding portfolio through developments in core industrial markets. Expanding portfolio Completed/In progress developments 39 US$137.2m ● 5 target markets: MCMA, Monterrey, Guadalajara, Tijuana and Ciudad Juarez. ● Over next five years targeting to add ~5 million sqft
Slide 23: Attractive development projects in process
Attractive development Monterrey projects in process Current projects Targeting stabilized NOI yield of 9% to 11% Buildings under development: 3 GLA: 917K sqft Total Investment: US$55.0m Locations: Mexico City (734k sqft of GLA) Monterrey (183k sqft of GLA) Land bank for future industrial developmen
Slide 24: Development: JUA044
Development: JUA044 Ciudad Juarez Development Project comprising 217k sqft of new GLA completed and fully leased prior to completion. Ciudad Juárez development ● Constructed a 217k sqft, Class A building in a premier location in Ciudad Juárez. ● Successfully leased upon completion to a US-based elec
Slide 25: Developments: Mexico City and Monterrey
Developments: Mexico City and Monterrey 36 hectares of land to develop two Class A industrial parks of up to 1.5M sqft of GLA. Mexico City - Cuautitlan Monterrey - Apodaca ● 15ha site in Mexico City. ● 21ha site in Monterrey’s most prominent industrial submarket, Apodaca. ● Developing two Class A in
Slide 26: Reliable financial performance
06 Reliable financial performance Consistently strong cash flows and well-positioned balance sheet 26
Slide 27: Solid performance and prudent distribution payout ratio
Solid performance and prudent distribution payout ratio Net operating income (NOI)1 (Ps. m) 4,000 3,307 3,403 3,693 3,542 3,087 3,222 3,000 2,521 1,990 2,000 1,534 1,000 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 NOI Margin (%) 89.6% 85.0% 85.7% 86.6% 87.0% 87.5% 87.8% 87.0% 87.7% Adjusted funds
Slide 28: Sustainability focus
07 Sustainability focus Industry-leading focus on ESG driving value for all stakeholders 28
Slide 29: Sustainability is at the core of our business strategies
Sustainability is at the core of our business strategies SUSTAINABILITY AND CORPORATE COMMITMENTS At FIBRA Macquarie, we are aligning our ESG commitments, investment strategies, and business operations to globally recognize and adopt Green Building Certification program sustainability objectives. Wi
Slide 30: Commitment with our communities
Commitment with our communities IMPAC(+) program in collaboration with Inroads ● FIBRA Macquarie has partnered with the Mexican not-for-profit, INROADS de Mexico, to develop IMPAC(+), a talent support program that enables social mobility opportunities for emerging youth. ● Supporting the vulnerable
Slide 31: Aligned with investors
Aligned with investors Corporate governance and fee construct are aligned with investors interest. Structure Technical committee Fees ● Follows Macquarie Asset Management’s ● 86% of Technical Committee (“TC”) is ● Performance fees must be reinvested in (“MAM”) highly disciplined and institutional in
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